Value of collaboration evident

Chain Drug Review, March 3, 2008

MISSISSAUGA, Ontario -- At the Canadian Association of Chain Drug Stores' annual conference Vic Mazzacone, senior vice president of corporate relations for Novartis Consumer Health Inc.'s North American business, and Michael Hartman, director of retail and consumer industry practice at PricewaterhouseCoopers LLP, presented the case for better, targeted collaboration between retailers and supplier partners in the launch of new products.

The data on which their recommendations were based had been developed from a study commissioned by the National Association of Chain Drug Stores.

The study was prompted by the acknowledgement that while new products are a key driver of growth and market differentiation for both manufacturers and retailers, the cost of launching new products is the single largest controllable expense, since more than 50% of new products fail to deliver on supplier-committed expectations.

The speakers described a four-step process that moved from reaching alignment and agreement on key success factors to solidifying mutual understanding, committing resources and setting goals, and dealing with contingencies. The process ends with a mutual review that is based on facts rather than perceptions.

Sufficient time for planning the process is crucial, Mazzacone and Hartman agreed. They proposed that the process start 18 to 21 months before the date of the proposed launch.

Adequate preparation was also a principal theme of a presentation by Tom Blake, cofounder of Optime International and author of Championship Selling: A Blueprint for Winning With Today's Customers.

Blake advised retailers and suppliers to "start early" in the process of developing perspective, engaging and connecting, constructing the plan and eventually providing the solution to the customer.

Deliberate coaching and mentoring of salespeople was another crucial element, he added.